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Governor Brown's budget bets big on expected capital gains taxes

by The Madeleine Brand Show

Gov. Jerry Brown discusses the cuts he has already made to help reduce the state's budget deficit by more than half as he unveiled his proposed 2012 billion state budget at a Capitol news conference in Sacramento, Calif.Rich Pedroncelli/AP

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Governor Jerry Brown's new budget proposal for the state is built on the assumption that Californians will report lots of capital gains when they file their taxes in April. The governor expects that taxes from those gains will fill budget holes, but now there's a big question about some of the Governor's projections.

The state's legislative analyst says the governor is being too optimistic. California's tax revenues will fall $6.5 billion short of Gov. Jerry Brown's prediction, even with an expected boost from Facebook's initial public stock offering, and if voters approve the governor's proposed tax initiative later this year, according to a forecast released Monday.

Guest:

John Myers, Sacramento bureau chief for KQED and the California Report.

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About The Madeleine Brand Show

The Madeleine Brand Show, exclusively on 89.3 KPCC, 89.1 KUOR and 90.3 KVLA, captures the spirit of the West in a conversational, informal, witty style and examines the cultural issues people are buzzing about. Hosted by Madeleine Brand, and produced by Kristen Muller, Steve Proffitt and Sanden Totten, the show includes regular segments like Weird L.A. - highlighting a person, place or thing that you've never heard about, but probably should; Parenting on the Edge - a weekly discussion on the challenges and pitfalls of raising kids; as well as regular contributors like Luke Burbank, Rico Gagliano, Brendan Newnam and John Moe to help dissect culture, technology and business news.